2018.01.2202:47:00UTC+00Gold Stable amid U.S. Government Shutdown Worries

Gold prices were on a steady footing on Monday amid a weaker dollar as the U.S. government shutdown due to a spending-bill impasse affected investor sentiment.

Spot fold was almost trading flat at $1, 331.57 per ounce. U.S. gold futures were up 0.1 percent at $1, 331.30. Holdings of SPDR Gold Trump increased 0.70 percent to 846.67 tonnes.

Meanwhile, the dollar index, which gauges to greenback versus a basket of currencies declined by as much as 0.5 percent to 90.155.

Funds for federal government agencies have run dry at midnight on Friday and was not replenished immediately amid a dispute between U.S. President Donald Trump and Democrats over the issue of immigration. Leaders of the Republican and Democratic senators held talks on Sunday as they look to break a deadlock that has kept the U.S. government shut down for two days. However, it was vague if an agreement could be reached to reopen federal agencies by the beginning of the workweek.

Another factor contributing to the bullishness of the gold was data from the U.S. Commodity Futures Trading Commission, which showed that hedged funds and money managers had increased their net long position in COMEX gold contracts in the week ending January 16.

Spot silver traded up 0.1 percent to$17.01. Platinum declined 0.1 percent to $1,011.65 after hitting its highest since September 8 at $1, 015.20 on Friday.